Caterpillar Announces Agreement with JLG

Caterpillar Inc., Peoria, Ill., has announced that it has signed an agreement with JLG Industries Inc., McConnellsburg, Pa., to produce Caterpillar branded telehandlers.

The deal is expected to close prior to the end of the year, subject to consultation with employees and their representatives, according to a press release from Caterpillar.

Caterpillar’s telehandler products are currently produced at BCP’s plant in Leicester, England, along with four other machine product groups. Under the new agreement, JLG will develop and manufacture a line of Cat branded telehandlers for global distribution. Caterpillar will retain responsibility for the B-Series telehandlers and earlier models, manufactured and sold by Caterpillar prior to the transistion of production to JLG.

As telehanlder production is shifted from Cat’s Leicester operations to the JLG facilities, BCP’s European operations will undergo a strategic restructuring to better position the manufacturing of its other four product groups, including backhoe loaders, small wheel loaders, compact wheel loaders and mini hydraulic excavators. Caterpillar will continue production of these machines at Leicester.